Duplex under contract, must occupy, which tenent would you evict?

[Michael H.]

Unit 1 - 3/2 with 5 people and 3 dogs living in the unit. month to month lease paying 1050 a month. guy is nice but they have a ton of clutter. as well as dogs that are not on lease. resident for 2. years. always paid on time. fixes things himself. hes a maintenance guy at a commercial building. havent seen credit or BG yet.

Unit 2 - 3/2 with older disabled lady, 20 something daughter lives with her. small lap dog as well. shes paying 889 a month. resident for 12 years. pays on time. nice and unit is well kept and clean. daughter and dog not on lease. month to month lease. fixed income. uses a walker. mentally sharp. havent seen credit or BG yet.

Rental Comps are 1200 to 1400 a month. both units are well under market rents. I self manage (for now)  owner had the property for 20 years, didnt manage it well, no one is screened properly. my wife and I must occupy the property so one must go. this is a class C community. inspection shows the systems and roof of the home to be in good shape.

what would you do?

Thanks BP family

[Michael Peters]

I agree with @Anthony Wick here.  If you can sustain some vacancy and turn over costs I think this is the best move.  

If not the 5 people and 3 dogs will only cause more damage the longer they stay specifically if they are already violating their lease.  If your feeling guilty regarding the older lady, as some of the other comments are hinting at, have a conversation with her to see what her financial situation and that of the daughter.  Rent definitely needs to be higher but you can possibly make it more bearable by getting the other person on the lease, if they are worth keeping.  

If you keep any of them make sure to get an Estoppel Certificate.  @Nathan Gesner shared this link in another recent post that had some great information on it.

https://eforms.com/rental/estoppel-certificate/